If Reckless Drivers Are More Likely to Buy Automobile Insurance

question 19

Multiple Choice

If reckless drivers are more likely to buy automobile insurance than safe drivers are,

• A) a moral hazard has occurred.
• B) adverse selection has occurred.
• C) the market for insurance is efficient.
• D) then automobile insurance will be fairly priced.

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Definitions:

Recommendations

Suggestions or proposals offered for consideration and action based on analysis and insights.

Eyeliner

A cosmetic product used to define the eyes by applying a contour around the eye area to create various aesthetic effects.

Efficient Distribution

The process of effectively managing the movement of goods from the point of production to the end-user or customer with minimal waste and cost.

Expensive Furnishings

High-cost furniture and decor items that are often high-quality or luxurious.